Domestic Refineries Seek Govt Support to Increase Production, End Petrol Importation
- Domestic refiners say Nigeria has enough installed capacity to reduce petrol imports in 2026
- Imported petrol made up over 60% of Nigeria’s fuel consumption in 2025, despite local refining
- CORAN blamed the limited crude oil supply for low refinery output across the country
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Domestic oil refiners in Nigeria have expressed confidence that locally produced petrol could significantly reduce the country’s reliance on fuel imports in 2026, provided key operational challenges are addressed.
Source: Getty Images
The Crude Oil Refiners Association of Nigeria (CORAN) said its members, including the Dangote Petroleum Refinery, have sufficient installed capacity to meet national fuel demand without heavy dependence on imports, The Punch reported.
Despite the commencement of operations at the 650,000 barrels-per-day Dangote refinery, petrol imports remained dominant in 2025.
Imported petrol accounts for over 60% consumption
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that imported petrol accounted for about 62.47% of Nigeria’s total consumption during the year.
The regulator reported that Nigerians consumed roughly 18.97 billion litres of petrol in 2025. Of this figure, oil marketing companies imported about 11.85 billion litres, while domestic refineries supplied approximately 7.54 billion litres, representing just over 37% of total demand.
Reacting to the figures, CORAN’s Publicity Secretary, Eche Idoko, said the data did not reflect the full refining potential within the country.
Why local refiners operate below capacity
He explained that most local refineries are operating below capacity due to limited access to crude oil feedstock, not because of technical limitations.
Idoko noted that while the Dangote refinery is currently producing about 50 million litres of petrol daily, Nigeria’s peak daily consumption is estimated at around 54 million litres.
He added that modular refineries could increase output significantly if crude supply challenges are resolved.
Source: UGC
Some refineries shut down due to feedstock shortage
He also said some refineries have scaled back operations or shut down temporarily due to inconsistent crude supply, while others under construction have faced delays as financiers seek assurances of long-term feedstock availability.
According to CORAN, addressing crude oil supply constraints and providing targeted funding support could enable local refineries to outperform fuel imports in 2026.
The association renewed calls for the creation of a refinery infrastructure development fund, similar to existing incentives in the gas sector.
The association further urged the NMDPRA to adopt more comprehensive data collection methods that capture refinery stock levels and production volumes, rather than relying solely on truck-out figures, to better reflect domestic supply capacity.
Sources at the Dangote refinery also maintained that the facility has enough fuel to meet local demand while exporting excess volumes, provided regulatory processes remain transparent and supportive, The Punch reported.
Petrol consumption drops in November
Legit.ng reported earlier that Nigeria’s petrol consumption dropped to 52.9 million litres daily in November, according to the data from the NMDPRA.
The latest fact sheet released by the agency showed a decline from the 56.74 million litres recorded in October, indicating a decline in national fuel demand and consumption.
However, NMDPRA noted that despite the reduced consumption, overall supply levels remained strong due to increased contributions from domestic refineries and imports. Local refineries delivered an average of 19.5 million litres per day in November, compared to 17.08 million litres in October.
Source: Legit.ng
